The bulk of this Publication originated in May 2002. UPTD:July 06, 2008. Contact me at Jim@bcidot.org
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TO: Applicable Ministries FROM: Jim Bramer, Retired CPA-Auditor
FILE: 0002-08/allRE: Priority BUXBOX Acctg System and HOMERS Originated: May 2002
Is there a Problem?
We are finding that a number of Ministries .... especially smaller Churches ... are struggling financially. We hope, as you go through the list below, that you do NOT have a number of "Yellow" or "Red" Flagable Financial Issues. Of course, the overall solution is to effectively utilize the FinFax accounting system as you control your Spending ..... Click Here.
F I N A N C I A L I S S U E S:
Green
Yellow
Red
1>
There is not enough income for the Board authorized
____
____
____
expenses of the General Purpose Fund-GPFund. 2>
The Ministry Finance Team is not functioning well ____
____
____
3>
The financial record keeping is not good. Such info is not
____
____
____
timely nor is it understood by those who should know.
4>
The GPFund is having to borrow from non discretionary funds
____
____
____
(especially donor designated Special Purpose Funds
SPFunds) in order to meet expenses.
5>
There are few finance savvy people on the Board of Leadership
____
____
____
6>
Staff members are not getting paid timely
____
____
____
7>
The rent (or mortgage payment) is behind
____
____
____
8>
The withheld payroll taxes are not paid timely
____
____
____
9>
Unpaid bills are 60 to 90 days old
____
____
____
10>
Operations are being funded by sale of assets
____
____
____
11>
The Ministry Executive (usually a Pastor) has little expertise
____
____
____
in ministry finance matters.
If a Problem, here is a 'Possible Solution'
But if you have too many "red" Flagable items above, let me introduce you to the PRIORITY BUXBOX Receipts and Disbursements System as managed by a HOMER who can efficiently serve you primarily remotely using the resources of modern day communication and the Internet as set forth within the FinFax accounting system . Of course, this PRIORITY BUXBOX system can be operated by someone locally. As of July 2006 there is also a SPENDING CONTROL web site that gives details about this solution.
The PRIORITY BUXBOX Receipts and Disbursements System has its origins with the Envelope system that many people use to manage their Personal Finances. Please go to 1211 for information about a Internet Centric (or Internet Friendly) solution specifically designed for this process and then access 0002 and Click Here for some more perspective, but the system basics are:
you only spend the Board discretionary GPFund money that comes in .... regardless of the amounts within the authorized annual budget, etc.
you identify this incoming GPFund money by order of spending priority.
you have a weekly accounting and reporting emphasis so that all know if they have money to spend following the week's deposits.
It is primarily the job of the HOMER to manage the PRIORITY BUXBOX System and make sure of understood Ministry financial facts. The HOMER makes no 'spending money' decisions, but can contribute to the staff properly utilizing this BUXBOX System and MUST make sure that such decisions are made from current and reliable information.
Here are some 'Possible Solution' specifics
This Sample Ministry is a Church and has determined in advance which discretionary expenses of their operation is to be paid in order of priority. This results in the establishment of the following GPFund Priority BuxBoxes:
1st-BuxBox
Self-Funding endeavors/events like VBS-AWANA etc; other specific events2nd-BuxBox
Staffer Costs -- weekly payment emphasis. Including payroll taxes that are due, also any volunteer clergy withholdings3rd-BuxBox
Mission Obligations4th-BuxBox
Rent/Debt Servicing and Facility Operating costs5th-BuxBox
Ministry OperationsWhen discretionary GPFund income arrives, the amount previously determined is assigned to the applicable BuxBoxes above. When the applicable BuxBox has the agreed amount of money, the residual is assigned on down the line. As displayed within 0002 , a weekly report is provided so applicable parties will know if they have any money to spend, etc.
Please examine the following possible "Ministry" scenario:
a> The Ministry sets up checking and savings accounts at a Financial Institution who provides Online Banking services - contact us for such a list. This might include the option of the Ministry remotely making deposits to their Bank Accounts. Plus you remotely can move money from one account to another. It will be frustrating if the Ministry does not has a fast Internet connection.
b> Ministry makes use of the Bank's Online Banking system as set forth within 4165; or both Ministry and HOMER have access to the equivalent of their Bank Statement at any given time of the month. Or arrangements are made for the use of QBOE as set forth within 0821.
c> At a predetermined weekly time HOMER gets info of what has been posted to Ministry's Bank Statement and electronically posts this data to HOMER's Quickbooks (QB) software system that HOMER establishes just for Ministry. The amount and check numbers info only are electronically posted to the QB system. Deposit/receipt identification and check distribution/payee info is needed in order to complete the process.
d> So at an agreed time HOMER invites Ministry's Staffer, via the Internet product known as GoToMyPC, to view their data now appearing within the QB system as shown on Homer's desktop. Ministry Staffer has access to HOMER's keyboard so they can post to the QB accounting system on HOMER's computer..
e> So Ministry's staffer remotely inputs alphabetical information and distributes the recorded receipts and checks to the appropriate BuxBoxes below as HOMER watches and understands, etc.
f> Using the available GoToMyPC Chat resource -- after a time there is no need for phone calls --- Ministry's staffer and HOMER can interact for any needed two-way communication, etc. The GoToMyPC resource would not be needed if you used the QBOE mentioned above because everyone has access to the info via the Web or Internet.
g> Both have and go through viewed checklists to insure completion of all tasks that might include: Ministry's Staffer makes weekly plastic payments (Click here for more details); does complete posting of receipts and checks, etc; and applicable weekly priority allocations.
h> At this time we do not have specific "PRIORITY" BUXBOX System report samples. So please see the BuxBox samples below as the "PRIORITY" BUXBOX System reports will be very similar.
i> HOMER now does QB weekly Proofs and produces the previously defined and agreed BuxBox Status reports. Click here to view samples below.
j> Ministry's Staffer uses something like PRINT SCREEN to make h/copy of various BuxBox Status reports, or HOMER converts them via QB into Excel docs and sends to Ministry as Email attachments
k> From such reports the Ministry has the needed spending control information for next week's controlled buying via Plastic or Check writing.
S E E D E T A I L E D BuxBox S A M P L E S B E L O W:
3rd BuxBox Box Details and Balance:
Overview, or Photo, Status Report
Check Stub Activity and Running Balance Report
Please let us know at Jim@bcidot.org if you have any comments or questions. Thank you.
The bulk of this Publication originated in May 2002. UPTD:July 06, 2008. Contact me at Jim@bcidot.org
HOME | ABOUT US | OUR PURPOSE | SITEMAP | COMPUTER FUND ACCTG | HELPS | GLOSSARY
(1) An Online Document, or WRIT (Writing), may be applicable to all Ministries, or it may be designed for just groups like: Evangelical Church, School, Missionary Agency or Organization, Christian Camp / Conference, or other named group.
(2) WRIT formats include the perspective of Jim@bcidot.org via IOMs (Inter-Office Memos) to the Ministry Finance Team (MFTeam); THRDs, a hypothetical Online conversation with members of the MFTeam; GLEANINGS, or Scripture within context of the MFTeam; FWIW; A periodic editorial (For What it is Worth); TRUISM, or believed Ministry Finance principles; and FAQ, response to Frequently Asked Questions